New York City — Global luxury group Kering has acquired a multi-level retail property at 715-717 Fifth Ave. in New York City for $963 million. The Paris-based company manages the development of a number of major fashion houses including Gucci, Saint Laurent, Balenciaga and Alexander McQueen.
The 115,000-square-foot space spans multiple levels at the base of the Corning Glass Building, a 28-story office tower developed in 1959. Rival fashion houses Dolce & Gabbana and Armani currently occupy the space. The Armani lease at the property is up in a few months, according to reports by the New York Post.
Real estate developer Jeff Sutton’s Wharton Properties sold the space. The company also recently sold 720 and 724 Fifth Ave. to fashion house Prada for a combined $835 million. Eastdil Secured advised Wharton Properties in all three deals, according to the New York Post.
Any potential impact on the space’s current tenants was not specified. Plans to maintain Gucci’s current flagship location across the street from 715-717 Fifth Ave. at Trump Tower were not mentioned in Kering’s release.
Manhattan’s Fifth Avenue ranked as the world’s most expensive retail destination in Cushman & Wakefield’s latest Main Streets Across the World report. With rents averaging approximately $2,000 per square foot, retail rent was up 14% from pre-pandemic levels on Fifth Avenue in 2023.
Alongside the company’s fashion houses, Kering owns a portfolio of retail locations in iconic shopping destinations, including properties on the Avenue Montaigne and Rue de Castiglione in Paris.